ATWOOD OCEANICS, INC., announced today that the Company earned net income of $83.4 million or $1.28 per diluted share, on revenues of $284.7 million for the quarter ended December 31, 2013 compared to net income of $101.9 million or $1.57 per diluted share on revenues of $292.7 million for the quarter ended September 30, 2013 and compared to net income of $72.8 million or $1.10 per diluted share, on revenues of $245.1 million for the quarter ended December 31, 2012.

Common stock, $1.00 par value, 90,000 shares authorized with 64,208 and 64,057 issued and outstanding at December 31, 2013 and September 30, 2013, respectively

64,208

64,057

Paid-in capital

187,416

183,390

Retained earnings

2,044,802

1,961,405

Accumulated other comprehensive loss

(1,843

)

(1,481

)

Total shareholders' equity

2,294,583

2,207,371

Total liabilities and shareholders' equity

$

4,078,719

$

3,657,266

8

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended December 31,

(In thousands)

2013

2012

Cash flows from operating activities:

Net income

$

83,397

$

72,831

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

32,544

27,578

Amortization of debt issuance costs and bond premium

1,176

1,036

Amortization of deferred items

(4

)

(32

)

Provision for doubtful accounts

—

1,871

Provision for inventory obsolescence

430

181

Deferred income tax expense/(benefit)

196

(220

)

Share-based compensation expense

3,354

3,048

Other, net

392

7

Change in assets and liabilities:

Accounts receivable

26,868

22,388

Income tax receivable

(859

)

141

Inventory

10,842

(257

)

Prepaid expenses

6,458

5,470

Deferred costs and other assets

(8,167

)

(4,039

)

Accounts payable

(13,556

)

(27,978

)

Accrued liabilities

11,195

4,937

Income tax payable

(3,767

)

3,603

Deferred credits and other liabilities

9,695

6,354

Net cash provided by operating activities

160,194

116,919

Cash flows from investing activities:

Capital expenditures

(462,620

)

(321,995

)

Installment proceeds from pending sale of asset

11,200

—

Proceeds from sale of assets

77

41

Net cash used in investing activities

(451,343

)

(321,954

)

Cash flows from financing activities:

Proceeds from bank credit facilities

340,000

240,000

Principal payments on notes payable

(6,046

)

(5,148

)

Proceeds from exercise of stock options

823

653

Debt issuance costs paid

(72

)

—

Net cash provided by financing activities

334,705

235,505

Net increase (decrease) in cash and cash equivalents

$

43,556

$

30,470

Cash and cash equivalents, at beginning of period

$

88,770

$

77,871

Cash and cash equivalents, at end of period

$

132,326

$

108,341

9

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing three ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."